US Stocks Futures little changed, S&P coming off another record close

Business & Markets 2013
Written by Reuters
Tuesday, 07 May 2013 19:44
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NEW YORK (May 7): U.S. stock index futures were flat on Tuesday as
investors found little reason to keep pushing shares higher following a
day on which the S&P 500 ended at yet another record high.
* Wall Street has advanced more than 13 percent so far this year,
outpacing gains for all of 2012 in about five months. The gains have
come on strong corporate results and accommodative policies from the
Federal Reserve, two factors that may now be priced into markets.
* Equities have thus far this year gone without a sustained correction as
investors use any market decline as a buying opportunity. While many
analysts expect markets to trend higher, several have also called for a
near-term pullback, citing a lack of positive catalysts and recent
economic data indicating an economy that continues to struggle.
* While the U.S. April non-farm payroll report, released last Friday, was much stronger than expected and helped fuel recent
market gains, manufacturing data has been mixed and overseas data has also pointed to signs of stalling growth.
* S&P 500 futures rose 2.1 points and were above fair value, a formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 37 points and Nasdaq
100 futures rose 6.5 points.
* The S&P 500 has risen for the past three sessions, climbing 2.2 percent over that period. The index also reached an all-time
intraday high of 1,619.77 in Monday's session.
* The quarterly corporate earnings season is winding down, but a number of major companies are on tap to report on
Tuesday, including Walt Disney Co, Whole Foods Market and Marathon Oil Corp.
* Emerson Electric Co early Tuesday reported second-quarter sales that were slightly under expectations and cut its full-year
outlook.
* Earnings have largely been positive, with 68.5 percent of S&P 500 companies surpassing estimates so far. At the same
time, revenue have been disappointing and second-quarter estimates have fallen as outlooks remain more negative than
positive.
* Overseas, European shares rose 0.3 percent on the back of positive earnings and expectations that central banks would
continue to stimulate the economy.
* New York Attorney General Eric Schneiderman late Monday said he plans to sue Bank of America Corp and Wells Fargo
and Co for violating the terms of a settlement designed to end mortgage servicing abuses. Also on Monday, BofA said it
would settle claims with MBIA for $1.6 billion, news that lifted shares in both companies on Monday.
* Shares of Bank of America edged 0.3 percent higher to $12.92 in premarket trading.
* Wall Street closed modestly higher on Monday, with the S&P 500 pushing further above 1,600 as BofA's settlement with
MBIA lifted financial shares. A rally at Apple Inc also boosted markets.